eBay fined 1.7m euros in perfume kerfuffle

A Parisian court has fined eBay 1.7 million euros (roughly $2.6 million) for violating an injunction that bars users from buying and selling perfumes and cosmetics from French luxury goods maker LVMH.

After a June 2008 court ruling, eBay users in France are banned from selling certain LVHM goods, including perfumes from Christian Dior, Givenchy, and Kenzo. The luxury-goods maker had accused eBay of allowing the sale of counterfeit LVHM products, but the ban applies to genuine goods as well - even if they're unused.

As reported by the Associated Press, the Commercial Court of Paris has now fined eBay for violating the ban. And eBay isn't happy.

"The injunction is an abuse of 'selective distribution,'" reads a statement from Alex von Schirmeister, general manager of eBay in France. "It effectively enforces restrictive distribution contracts, which is anti-competitive."

But he added that eBay has complied with the injunction. And he said that the fine was much too high considering previous legal eBay victories in counterfeits cases elsewhere in the world.

eBay has appealed both rulings, and von Schirmeister said eBay believes a higher court will overturn today's fine. In 2008, eBay was also ordered to pay more than 35 million euros in damages to LVHM. ®